Automakers Help Allies Handle Crises
Seeking to mitigate disaster costs after events such as 9/11 and last year’s blackout, Detroit automakers said Wednesday they’ll ask their suppliers and dealers to take part in a crisis management plan that will prepare them for emergencies. The automakers, working together through a trade organization called the Automotive Industry Action Group (AIAG), released a booklet that could serve as a guide for suppliers and dealers that either don’t have a contingency plan or want to modify an existing one. GM said that it will begin rolling out the process to all its 3,700 suppliers next week. The AIAG said the plan is voluntary for suppliers and will result in minimal costs for the companies.
Johnson Controls Delays Move
Plymouth Township, Mich., will retain its largest taxpayer for the time being. Johnson Controls officials recently announced they will not to move to Salem Township this year, but still expect to relocate their headquarters and technology facilities from Plymouth Township to a larger site when a suitable location is found.
Proposed Wal-Mart Causes Concern for Local Auto Parts Distributor
The idea of a new Wal-Mart going up in one Charlotte, NC, suburb is the cause of concern for some in the area, particularly a nearby automotive parts distributor. According to a report in the Charlotte Observer, a hearing on an application to build the new Wal-Mart store lasted more than five hours on Tuesday. Wanda Miller owns Belmont Automotive Distributors, which is located near the new proposed outlet for the national retail giant. Miller testified that she was concerned that Wal-Mart would take away business from her shop.
Save the Date: MEMA Legislative and Public Policy Summit – Advancing American Manufacturing, May 5-6
MEMA and its market segment associations – AASA, HDMA and OESA – will host the inaugural “MEMA Legislative and Public Policy Summit: Advancing American Manufacturing” on Thursday and Friday, May 5-6 in Washington, DC. The Summit has been created to raise awareness among Washington policymakers of the supplier industry’s many contributions to the nation’s economy. MEMA intends to bring members to Washington, DC, to collectively share their priorities and concerns with members of Congress and the Bush administration. While in Washington, they will discuss best practices in government affairs for our industry, and provide updates and dialogue on legislative, regulatory and political developments from senior administration officials, members of Congress and other experts.
Herman Trend Alert: Overtime to Increase
Under ideal conditions, employers have just the right number of employees to perform the work that needs to be done. Overtime payroll costs are minimal, incurred only in those rare instances when there is some unusual circumstance or a critical employee is ill or on vacation. Over the past few years, companies have reduced employment to minimum staffing levels. People have been asked to work extra hours from time to time on an “as-needed” basis. This strategy has been a preferred alternative to hiring more people and increasing fixed payroll costs.
Magna President and CEO Resigns, Expected to Run for Canada’s Conservative Party
Belinda Stronach, president and CEO of diversified automotive supplier Magna International, has resigned. According to recent news reports, Stronach is expected next week to announce her candidacy for the leadership of Canada’s Conservative Party. Her father, Magna Founder and Chairman Frank Stronach, has assumed the position of interim president.
Noble International Completes LWI Acquisition, Plans to Sell Monroe Engineering Subsidiary
Noble International has completed its acquisition of Clinton Township, Mich.-based Laser Welding International (LWI), a supplier of laser-welded blanks to General Motors. The acquisition which was first announced late last week, now includes the proposed sale of LWI’s subsidiary, Monroe Engineering Products. Noble paid $14.7 million for LWI, with an additional $1 million payable if certain new business is awarded to Noble within the next twelve months.
Exide Introduces NASCAR Branded Product Line at Sam’s Club
Playing off the brand recognition the NASCAR name holds with its estimated 75 million fans, Exide Technologies has introduced a new NASCAR branded transportation battery program at Sam’s Club, a national members-only chain of retail warehouses. The new program is exclusive to Sam’s Club and will be available in more than 462 locations nationwide.
ArvinMeritor Announces Finance Leadership Appointments
Robert “Rob” Guy has been named vice president of finance for ArvinMeritor’s light vehicle systems (LVS) business group. Marc Pensa has been named vice president of finance for ArvinMeritor’s commercial vehicle systems (CVS) business group. Robert “Rob” Guy has been named vice president of finance for ArvinMeritor’s light vehicle systems (LVS) business group. Marc Pensa has been named vice president of finance for ArvinMeritor’s commercial vehicle systems (CVS) business group.
Greg Potter Named 2004 ETI President
Greg Potter of Chief Automotive Systems has been elected 2004 president of the Equipment and Tool Institute (ETI).